A Comparative Study Of Financial Analysis Of CRCC And CRE

Since2008, the global spread of financial crisis, China was not spared. In order to fight the crisis, maintaining growth, the central government of China in November launched the four trillion investment plan, to stimulate the economic development. Throughout the plan, the major infrastructure construction investment, for example railway、freeway、airport and so on, occupies an important position, and the railway especially high-speed railway investment occupies an important proportion. Today, the development of China’s high-speed railway in a certain extent also benefited from the2008national economic stimulus plan. As the two pillars of China railway construction enterprises, CRCC and CRE, no doubt, in the investment plan also share a cup of a thick soup, as a Listing Corporation, financial data performance is also perfectful.This paper begins with the analysis of CRCC and CRE companies’status. Secondly, the basic theory and literature of the financial statement analysis the basic theory and literature at home and abroad are reviewed and commented. Thirdly, CRCC and CRE in2008to2011audited financial data released as the foundation, the first is simple compared to the basic financial data. And then we analyzed the two listing Corporation operating results and financial condition, and comparatively analyzed the two company’s profit ability, debt paying ability, operation ability and development ability. On this basis, the two companies to be make further the comprehensive performance analysis and evaluation, using DuPont analysis and coordination analysis method. Finally, the use of financial matrix analysis method, the two company’s financial policies are analyzed and compared, analyzed the financial problems, and from the operational policy, capital structure policy, investment policy and dividend policy gives the related conclusion and suggestions.